Banks putting profits before consumer welfare

The experienced informer claims that “consumers should be very, very wary of their banks” as they work towards goals for take up of banking products, whether or not the consumer can afford them.

“Every branch of any bank, and every individual who works in a bank, has very ambitious sales targets to sell you more products – effectively to make you borrow money and to get you further into debt,” the whistleblower told BBC One’s Britain’s Streets of Debt.

Due to the clamour to achieve targets, she said that banks “are putting profits before human life, almost”, citing the case of the man who committed suicide over £120,000 of debt to the Royal Bank of Scotland.

His story was like that of many others, where he was leant the sum despite only earning £26,000 per year, while one woman was given £4,500 credit when her annual salary was only £5,500.

With warnings that banks find that their most profitable customers “are perhaps the most vulnerable”, the insider warned people against taking on debt they cannot afford, despite what their bank may tell them.

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ClearDebt proposes and administers Individual Voluntary Arrangements (IVAs). We only provide advice on the basis that there is reasonable contemplation of an insolvency appointment, once it is apparent that an IVA is likely to be the most appropriate debt solution.

David Emanuel Merton Mond is licensed to act as Insolvency Practitioners in the UK by the Insolvency Practitioners Association.
Elaine Masters is licensed to act as an Insolvency Practitioner in the UK by the Institute of Chartered Accountants in England and Wales.